Originally Posted by Foo2
I'm not calling fraud, only creative accounting. Books aren't generally big budget production items.
e-books don't require warehouse storage? Then don't whine about the cost of warehouses; sell them and move along quietly.
Creative accounting verges on fraud if it can be proven that what was done was done to avoid paying off a legitimate debt.
Right now, e-book sales are less than 5% of book sales. Look at what happened with iTunes and other music services, it took years to get to where they are today, and that's still under 30% of music sales.
You can't get rid of warehouse space 1% a year. It has to be done in chunks.
Everybody still gets paid except perhaps the producers and investors.
The producers have to get paid too, They do a lot of work. And the investors are covered by insurance and other cross deals.
Tangent: Authors don't earn anything from book sales until their advance has been recovered. The uncertainties surrounding e-books might lead publishers to offer smaller or fewer advances. Authors will tend to be compensated more from their successes than from expectations of their success.
The advance is a royalty payment up front, in a sense. It is a payment, and must come out of the price of every book sold until, hopefully, enough books are sold to pay it down. Usually, it doesn't happen.
Advances serve another purpose. For new authors, and authors who sell few, but profitable books, it's a way of paying their expenses so that they can work on their book without having to work to pay for their expenses. Or at least to make it easier. The entire concept became perverted in the race to obtain ever bigger selling authors or names, so that now the biggest can get $10 million in advance for a book. Absurd!